Zammitti Law, PLLC


Serving New York’s Hudson Valley and Northern New Jersey


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Practice Areas



ESTATE PLANNING & WILLS AND TRUSTS





At Zammitti Law, PLLC, we work closely with you to define your planning goals to ensure the best protection for you and your family.



Estate Planning Simplified



The Basics





First, ask yourself 5 essential questions:

1. Do you have a guardian named for your minor children?


2. Have you protected your assets from long term care costs?


3. Are you minimizing your tax liability?


4. Do you have a designated agent for health care or financial purposes to make decisions if you cannot?


5. Have you reviewed your estate plan in the last three years?


If you answered NO to any of these questions or you are UNSURE, now is the time to learn more.



Wills | Trusts





WHAT IS A REVOCABLE TRUST?

A contractual agreement established by you as creator (Trustor) and manager (Trustee) of the assets held by the trust. You can amend this agreement during your life. At either incapacity or death, the trust directs your wishes for treatment of your assets.


WHAT IS A WILL?

A written document conveying your wishes for the division of your estate assets at death.


WHICH PLAN IS BEST FOR YOU?

It depends on your specific family and estate circumstances. The following factors must be considered:

• Size of your estate (ie. value of all assets, including your home)

• Location of real property (resident state only or multiple states)

• Ownership of retirement and/or life insurance assets

• Family dynamics

• Specificity & uniqueness of wishes.


*This list is not entirely inclusive of all possible relevant factors.



Probate & Elder Law





At Zammitti Law, PLLC, we work closely with you to ensure the best protection for you and your family.



Probate | Trust Administration





The prospect of dealing with finances after the passing of a loved one is extremely daunting. At Zammitti Law, PLLC we take the burdens of this process off your shoulders and assist with each aspect in a controlled and efficient manner. There are three general goals for a successful estate/trust administration:

1. Collection and management of assets

2. Payment of debts, expenses and taxes

3. Distribution of net assets to the named beneficiaries.

IMPORTANT NOTE: It is not uncommon for an estate/trust administration to take over a year to complete given the above processes and need for tax filings, etc.


Responsibilities of a Fiduciary Executor/Executrix:

• Officially obtain assignment through probate action in Surrogate’s Court

• Collect decedent’s assets after death

• Pay valid creditor’s claims and other liabilities of the probate estate

• File an Inventory of Assets with the Surrogate’s Court

• Protect and preserve assets until distribution can take place

• Distribute assets to beneficiaries in accordance with the Will

• Dispose of any remaining property Trustee

• Protect and preserve all assets held under a trust on behalf of the beneficiaries

• Distribute assets to the beneficiaries as directed by the trust Other Duties for either Fiduciary Role

• File estate and/or inheritance tax returns within specific time frame, if necessary

• Ensure final personal and fiduciary income tax returns (if any) are filed with the IRS and state

• Provide accounting of transactions from date of death until distribution to all beneficiaries



Elder Law | Medicaid Planning





We are an aging population and the legal concerns of seniors are ever mounting. At Zammitti Law, PLLC, we face these issues head on by discussing concerns relative to long term care and special needs at the very first meeting. A proactive approach with a knowledgeable elder attorney can help protect your individual well-being and the assets you have worked your life to achieve.


Brief Facts:

According to the More than U.S. Dept of Health and Human Services Survey, 70% of Americans over age 65 will need long-term care services at some point in their lives.

• Median Cost for Home Health Aide in NY is $4,400 per month ($52,800 per year)

• Average Cost for Nursing Home Care in Orange County area is $11,500 per month ($138,000/yr)


Government Assistance – Medicaid

• NY Resource Allowance (2018): $15,150 o Maximum spousal allowance: $123,600

• NY Income Allowance (2018): $842/month o Certain additional allowances for “reasonable” living expenses and spouses Anything above these limits would be spent down without further planning


Allowable Expenses & Other Transfers

• Certain purchases such as a car or home improvements are allowable for Medicaid purposes and do not count as a transfer upon applying for government assistance.

• The Medicaid LOOK BACK period for transfers when applying for facility care coverage is 5 YEARS! This means a gift today will be considered an available resource if you apply for Medicaid within five years.


How Best to “Gift” Your Assets Now

Using your home as an example, you could either gift your non-mortgaged property to your children outright or use a vehicle whereby the gift of your house is received by your beneficiaries only after your passing (ie. an irrevocable trust). The differences are as follows:

• Outright Gifts – transfer house to kids

- Starts the 5 year lookback period

- Not as safe or flexible as using an irrevocable trust

• Irrevocable Trust – transfer house to trust o Starts the 5 year lookback period

- Protects your home from any creditors of your beneficiaries

- Ensures your right to reside in your home for your lifetime

- Maintains your property tax rebates & discounts

- Includes the asset in your estate to minimize capital gains liability due from your beneficiaries at a future sale


Citizen Friendly Laws in New York

The fear of spending down your assets is real, but luckily the State of New York has several laws to assist with the avoidance of this scary prospect.

Shorter Look-Back Period for Community Care: If you are able to receive care in a residence (whether it is your home or someone else’s home), the period of time Medicaid will consider when reviewing your resources is no longer five years, but 1 month. Spousal Refusal:

If you are married and one spouse becomes ill requiring care, it is possible to transfer the assets to the community spouse and obtain Medicaid coverage by “refusing” to provide support for medical expenses. Keep in mind, however, that the state has the option to attempt to recover from the spouse. ​



TAX PLANNING & Business Law





At Zammitti Law, PLLC, we specialize in the nuance of tax planning and business law. Please let us know how we can help.



Tax Planning





Income Tax Savings Example:

Using your home as an example, the options to gift outright or in trust produce very different income tax results at the time of a future sale by your beneficiaries.

• Paid $50,000 for your home

• Current value is $250,000


Outright Gift of Home Home Placed in Trust

Capital Gain $250,000 - $50,000 = $200,000 $250,000 - $250,000 = $0

Estimated Tax $40,000 $0


The combined federal and state income tax of approximately $40,000 is eliminated by retaining the home in your estate at death by providing your beneficiaries with a stepped-up cost basis to the value of the home at your passing. A savings of $40,000 is created for your family with one simple planning tool.


Estate Tax Facts:

Estate Tax Exemption – The limit set by law, above which, your assets will be taxed if inherited by beneficiaries other than your spouse.

2018 Federal Estate Tax Exemption: $11,180,000 per individual

Top Tax Rate for Taxable Estate: 40%

2017 (after 4/1) NY Estate Tax Exemption : $5,250,000 per individual

Top Tax Rate for NY Taxable Estate: 16%

2017 NJ Estate Tax Exemption: $2,000,000 per individual

Top Tax Rate for NJ Taxable Estate: 16%


*NY law also includes an estate tax cliff. If a decedent’s estate exceeds 105% of the exemption, the entire value of the estate will be taxed and does not allow any exemption. If planning is not implemented to avoid this scenario, it could cost families hundreds of thousands of dollars.


Inheritance Tax Facts:

There is no federal inheritance tax. Only certain states tax the assets received by certain beneficiaries. New York does not have an inheritance tax.


New Jersey inheritance tax applies to assets transferred to beneficiaries other than immediate ascendants, spouse and descendants (Class A) or exempt organizations (Class E). For example, a sibling or the spouse of a deceased child would be taxed at the following rates depending on the amount they receive as a beneficiary of your estate.


First $25,000 - No tax is due

Next $1,075,000 - 11%

Next $300,000 - 13%

Next $300,000 - 14%

Over $1,700,000 - 16%


Any beneficiaries not falling within another class are considered a Class D beneficiary, taxed at 15% for the first $700,000 and 16% for everything over $700,000. http://www.state.nj.us/treasury/taxation/pdf/other_forms/inheritance/transferinheritanceclasses.pdf


Gift Tax Facts:

Neither New York nor New Jersey have a gift tax. However, the federal government has an annual gift exclusion and a lifetime gift tax exemption.


The 2018 Annual Gift Exclusion is $15,000. This means that you can gift up to $15,000 to as many individuals as you like without filing a gift tax return (Form 709) or utilizing a portion of your lifetime gift tax exemption.


The 2018 Lifetime Gift Tax Exemption is equal to the federal estate tax exemption of $5,600,000. Although the exemption amount is the same if gifts are made during life or left to beneficiaries at death, there is a potential benefit to making lifetime gifts created by its tax exclusiveness (rather than the tax inclusive nature of the estate tax). Any assessments of this kind would also consider the income tax impact to ensure the overall minimization of all tax liabilities.





Business Law





- Corporation or Professional Corporation

- Certificate of Incorporation

- Limited Liability Company (LLC)

- Articles of organization

- Operating agreements

- Shareholder agreements

- Formation

- By-Laws / Shareholder Agreements

- Contract and Leases

- Succession Planning

- Creative Problem Solving for Complex Legal Matters



Working Remotely from Warwick
Mailing Address: 108 Main Street, Unit 1193, Warwick, NY 10990
Phone: 845-988-0958
Fax: 845-244-5593


CALL US: 845.988.0958

Zammitti Law, PLLC



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